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Northeast Indiana Bancorp, Inc. Announces Record Year To Date And Record Quarterly Earnings

HUNTINGTON, Ind., Oct. 11, 2019 /PRNewswire/ -- Northeast Indiana Bancorp, Inc. (NIDB), the parent company of First Federal Savings Bank, today announced net income for the nine months ended September 30, 2019 increased $379,000 or 12.0% to $3.54 million ($2.96 per diluted common share), compared to net income of $3.16 million ($2.65 per diluted common share) for the nine months ended September 30, 2018. The current nine months earnings represent a new record for the Company and equates to an annualized ROA of 1.34% and an annualized ROE of 12.01%. This compares to an annualized ROA of 1.31% and an annualized ROE of 11.68% for the nine months ended September 30, 2018.

(PRNewsfoto/Northeast Indiana Bancorp, Inc.)

Net income increased $330,000 or 32.0% to $1.36 million ($1.14 per diluted common share) for the Company's third quarter ended September 30, 2019 compared to net income of $1.03 million ($0.86 per diluted common share) for the third quarter ended September 30, 2018. The current three months earnings represent a new record for the Company and equates to an annualized return on average assets (ROA) of 1.53% and a return on average equity (ROE) of 13.31%. This compares to an annualized ROA of 1.27% and an annualized ROE of 11.22% for the three months ended September 30, 2018.

"We are very pleased with our record performance this quarter and year to date," states Michael Zahn, President and CEO of First Federal Savings Bank. Zahn continues, "We continue to see steady growth in both deposits and loans while maintaining strong profitability. The dedication and execution from our team continues to provide excellent financial results."

Net Loans Receivable have increased $11.3 million or 4.7% to $251.4 million at September 30, 2019 compared to $240.1 million at December 31, 2018. Total Deposits have increased $13.0 million or 5.6% to $246.3 million at September 30, 2019 compared to $233.3 million at December 31, 2018. Shareholder's equity increased $4.0 million or 10.8% to $41.3 million at September 30, 2019 compared to $37.3 million at December 31, 2018. The book value of NIDB's stock was $34.28 per common share as of September 30, 2019. The number of outstanding common shares was 1,206,327 as of the same date. The last reported trade of the stock on October 10, 2019 was $39.00 per common share.

Northeast Indiana Bancorp, Inc. is headquartered at 648 N. Jefferson Street, Huntington, Indiana. The company offers a full array of banking and financial brokerage services to its customers through its main office in Huntington and five full-service Indiana offices in Huntington (2), Warsaw and Fort Wayne (2). The Company is traded on the OTC Markets Group, Inc. (www.otcmarkets.com) utilizing the OTCQB platform under the symbol "NIDB". Our web site address is www.firstfedindiana.bank.

This press release may contain forward-looking statements, which are based on management's current expectations regarding economic, legislative and regulatory issues. Factors which may cause future results to vary materially include, but are not limited to, general economic conditions, changes in interest rates, loan demand, and competition. Additional factors include changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, regulatory and technological factors affecting each company's operations, pricing, products and services.

NORTHEAST INDIANA BANCORP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION




ASSETS

September 30, 2019

December 31, 2018

Interest-earning cash and cash equivalents

$

10,276,264

$

3,605,610

Noninterest earning cash and cash equivalents

2,787,770

2,685,698

    Total cash and cash equivalents

13,064,034

6,291,308

Interest- earning time deposits

3,681,000

3,436,000

Securities available for sale

63,466,943

63,898,265

Securities held to maturity

1,044,606

1,233,843

Loans held for sale

728,800

453,100

Loans receivable, net of allowance for loan loss September 30, 2019 $3,094,673
and December 31, 2018 $2,856,319

251,392,527

240,075,827

Accrued interest receivable

1,258,858

1,314,404

Premises and equipment

3,864,415

3,988,192

Investments in limited liability partnerships

2,203,334

2,428,334

Cash surrender value of life insurance

8,782,818

8,613,693

Other assets

2,179,901

2,477,748

    Total Assets

$

351,667,236

$

334,210,714

LIABILITIES AND STOCKHOLDERS' EQUITY



Non-interest bearing deposits

31,568,750

26,751,611

Interest bearing deposits

214,762,649

206,618,957

Borrowed Funds

59,485,134

59,763,974

Accrued interest payable and other liabilities

4,495,034

3,735,912

    Total Liabilities

310,311,567

296,870,454




Retained earnings – substantially restricted

41,355,669

37,340,260

    Total Liabilities and Shareholders' Equity

$

351,667,236

$

334,210,714


CONSOLIDATED STATEMENTS OF INCOME





Three Months Ended

Nine Months Ended


September 30,

September 30,


2019

2018

2019

2018

Total interest income

$

4,097,681

$

3,560,452

$

12,107,235

$

10,380,320

Total interest expense


1,104,242


848,973


3,315,199


2,283,207

    Net interest income

$

2,993,439

$

2,711,479

$

8,792,036

$

8,097,113

Provision for loan losses


200,000


-


350,000


-

    Net interest income after provision for loan losses

$

2,793,439

$

2,711,479

$

8,442,036

$

8,097,113

        Service charges on deposit accounts


190,919


170,016


539,822


491,061

        Interchange Fees


160,982


133,327


443,850


395,271

        Net gain (loss) on sale of securities


(6,510)


-


91,526


(4,947)

        Net gain on sale of loans


385,842


138,351


648,112


545,420

        Net gain (loss) on sale of repossessed assets


160,982


(5,000)


7,608


(4,851)

        Brokerage fees


41,914


58,804


164,969


178,047

        Increase in cash surrender value of life insurance


56,625


59,876


169,125


173,626

        Other income


252,859


146,532


535,420


397,162

Total noninterest income

$

1,082,631

$

701,906

$

2,600,432

$

2,170,789

    Salaries and employee benefits


1,279,760


1,186,985


3,877,132


3,565,269

    Occupancy


291,719


279,721


853,257


804,954

    Data processing


245,498


293,212


719,020


870,462

    Deposit insurance premiums


-


14,000


24,000


62,000

    Professional fees


53,695


91,612


287,255


233,507

    Correspondent bank charges


35,306


33,868


109,859


97,101

    Other expense


341,406


323,212


1,032,553


968,578

Total noninterest expenses

$

2,247,384

$

2,222,610

$

6,903,076

$

6,601,871

Income before income tax expense

$

1,628,686

$

1,190,775

$

4,139,392

$

3,666,031

Income tax expense


267,005


159,182


599,203


505,127

Net Income

$

1,361,681

$

1,031,593

$

3,540,189

$

3,160,904



Three Months Ended

September 30,


Nine Months Ended

September 30,


2019

2018


2019

2018

Basic Earnings per common share

1.14

0.86


2.96

2.65

Dilutive Earnings per share

1.14

0.86


2.96

2.65

Net interest margin

3.57%

3.56%


3.55%

3.59%

Return on average assets

1.53%

1.27%


1.34%

1.31%

Return on average equity

13.31%

11.22%


12.01%

11.68%

Efficiency ratio

55.14%

65.11%


60.59%

64.30%

Average shares outstanding- primary

1,198,419

1,195,119


1,197,226

1,194,024

Average shares outstanding- diluted

1,198,586

1,195,286


1,197,926

1,195,724

Allowance for loan losses:





    Balance at beginning of period

$

2,984,907

$

2,808,485


$

2,856,319

$

2,746,523

    Charge-offs:





        One-to-four family

41,961

30,471


41,961

41,072

        Commercial real estate

-

-


73,705

-

        Land/land development

-

-


-

-

        Commercial

-

-


25,000

2,250

        Consumer

67,622

91,814


153,031

184,793

          Gross charge-offs

109,583

122,285


293,698

228,115

    Recoveries:





        One-to-four family

936

474


2,660

1,164

        Commercial real estate

-

-


64,040

66,755

        Land/land development

-

-


-

-

        Commercial

1,581

-


23,649

7,428

        Consumer

16,832

40,444


91,703

133,363

          Gross recoveries

19,349

40,918


182,052

208,710

    Net charge-offs

90,234

81,367


111,646

19,405

    Additions charged to operations

200,000

-


350,000

-

    Balance at end of period

$

3,094,673

$

2,727,818


$

3,094,673

$

2,727,118






(1) Net loan charge-offs/(recoveries) to average loans

0.14%

0.14%


0.06%

0.01%






Nonperforming assets (000's)

At September 30,

At June 30,


At March 31,

At December 31,

    Loans:

2019

2019


2019

2018

        Non-accrual

$

4,952

$

4,970


$

2,291

$

2,674

        Past 90 days or more and still accruing

-

-


-

-

        Troubled debt restructured

470

530


552

170

          Total nonperforming loans

5,422

5,500


2,843

2,844

    Real estate owned

361

-


-

33

    Other repossessed assets

-

-


-

-

        Total nonperforming assets

$

5,783

$

5,500


$

2,843

$

2,877




    Nonperforming assets to total assets

1.64%


1.53%


0.83%

0.86%

    Nonperforming loans to total loans

2.13%


2.14%


1.14%

1.17%

    Allowance for loan losses to nonperforming loans

57.08%


54.27%


99.30%

100.42%

    Allowance for loan losses to net loans receivable

1.23%


1.18%


1.15%

1.19%








At September 30,



2019

2018









Stockholders' equity as a % of total assets

11.76%

11.29%




Book value per share

$

34.28

$

30.59




Common shares outstanding- EOP

1,206,327

1,206,327









(1) Ratios for the three-month periods are annualized.

















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